By Coleman H.B. No. 2684
76R9012 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to reinvestment zones and their administration.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 Sec. 1. Subsection b of Section 311.010 Tax Code is amended
1-5 to read as follows:
1-6 (b) The board of directors of a reinvestment zone or the
1-7 municipality may enter into agreements on the conditions and for a
1-8 term the board and or municipality considers necessary or
1-9 convenient to implement the project plan and reinvestment zone
1-10 financing plan and achieve their purposes. An agreement may
1-11 provide for the regulation or restriction of the use of land by
1-12 imposing conditions, restrictions, or covenants that run with the
1-13 land. An agreement may dedicate, pledge and provide that revenue
1-14 in the tax increment fund for the term of the agreement be used to
1-15 pay any project costs which benefits the reinvestment zone, whether
1-16 located within or outside of the zone, including the cost of school
1-17 buildings and other educational facilities, rail or transit
1-18 facilities, affordable housing, remediating conditions
1-19 contaminating public or private land or buildings, preserving the
1-20 facades of or demolishing public or private buildings or replacing
1-21 housing or areas of public assembly (in or out of the zone). An
1-22 agreement may dedicate revenue from the tax increment fund to pay a
1-23 neighborhood enterprise association for providing services or
1-24 carrying out projects authorized under Subchapters E and G, Chapter
2-1 2303, Government Code, in the zone. The term of an agreement with
2-2 a neighborhood enterprise association may not exceed 10 years.
2-3 Sec. 2. Section 311.011 Tax Code is amended by adding the
2-4 following as subsection (d), (e) and (f) and (g):
2-5 (d) The board of the reinvestment zone may exercise any of
2-6 the powers granted to the municipality by Section 311.008; however,
2-7 the municipality may restrict by ordinance or resolution any power
2-8 the board is granted by this Chapter.
2-9 (e) a taxing unit may enter into a tax abatement agreement
2-10 with personal or real property owners in the reinvestment zone
2-11 after it has entered into an agreement that its tax increments
2-12 would be paid into the tax increment fund; provided, however, an
2-13 agreement to abate taxes or real property must be approved by the
2-14 board of directors the reinvestment zone.
2-15 (f) The board of the reinvestment zone may exercise the
2-16 powers set forth in this section after the municipality adopts an
2-17 ordinance creating the zone notwithstanding any charter provisions
2-18 of the municipality to the contrary.
2-19 (g) The board of directors of a reinvestment zone and the
2-20 municipality may contract with a local government corporation
2-21 created by the municipality pursuant to Chapter 431 Transportation
2-22 Code to manage the reinvestment zone and implement the project plan
2-23 for the term and on such conditions as the parties agree.
2-24 Sec. 3. Subsection (f) of Section 311.011 Tax Code is
2-25 amended to read as follow:
2-26 (f) In a zone designated under Section 311.005(a)(5) that is
2-27 located in a county with a population of 2.1 million or more, [the
3-1 project plan must provide that at least one-third of the surface
3-2 area of the zone, excluding roads, streets, highways, utility
3-3 rights-of-way, and other public areas or areas exempt from ad
3-4 valorem taxation, be dedicated to residential housing and] the
3-5 project plan must provide that at least one-third of the tax
3-6 increment of the zone be used (dedicated) to provide affordable
3-7 (low income) housing.
3-8 Sec. 4. Section 311.014, Tax Code is amended by adding the
3-9 following new subsection (j):
3-10 (j) A taxing unit may retain from the amount otherwise
3-11 required to be paid into the tax incremental fund of a reinvestment
3-12 zone created on or after September 1, 1999 the amount resulting
3-13 from the levy of a tax on the captured appraised value of the zone
3-14 at the rate the taxing unit levies to pay its bonds or other
3-15 obligations. The taxing unit may not retain such tax increment in
3-16 a reinvestment zone created before September 1, 1999 unless the
3-17 taxing unit retained that right in the agreement to participate in
3-18 the zone.
3-19 Sec. 5. Section 431.101 of the Transportation Code is
3-20 amended to read as follows:
3-21 Section 431.101. CREATION AND DISSOLUTION OF LOCAL
3-22 GOVERNMENT CORPORATION. (a) A local government corporation may be
3-23 created to aid and act on behalf of one or more local governments
3-24 to accomplish any governmental purpose of the local governments.
3-25 The governing body of the local government must approve the
3-26 articles of incorporation and the by laws of any local government
3-27 corporation acting on its behalf.
4-1 (b) A local government corporation has the powers of a
4-2 corporation authorized for creation by the commission under this
4-3 chapter and a non-profit corporation created under the Texas
4-4 Non-Profit Corporation Act (Article 1396-101 et seq Vernon's Texas
4-5 Civil Statutes to the extent that the provisions of the Texas
4-6 Non-Profit Corporation Act are not inconsistent with this chapter.
4-7 The provisions of the Texas Non-Profit Corporation Act is
4-8 applicable to the directors and officers standards of conduct,
4-9 interests in contracts and powers.
4-10 (c) Since a local government corporation is created and
4-11 dissolved by a local government the provisions of this chapter
4-12 relating to creation, dissolution, administration and supervision
4-13 of a corporation by the commission shall not be applicable to a
4-14 local government corporation.
4-15 (d) The provisions of Section 394.904 of the Local
4-16 Government Code shall be applicable to contracts awarded by a local
4-17 government corporation and to property or improvements owner by the
4-18 local government corporation.
4-19 (e) The persons appointed to the board of directors of a
4-20 local government corporation may be the same persons as serve on
4-21 the board of a reinvestment zone created by a municipality pursuant
4-22 to Chapter 311 Tax Code. The members of the board of directors of
4-23 the reinvestment zone and of the board of directors of the local
4-24 government corporation are not public officers and therefore, the
4-25 same person may be appointed to serve on behalf of the reinvestment
4-26 zone and the local government corporation. A director of a local
4-27 government corporation may receive fees for their service and
5-1 reimbursement of their expenses as provided by Section 49.060 Water
5-2 Code. [The provisions of the Texas Non-Profit Corporation Act
5-3 relating to standards of conduct shall be applicable to the members
5-4 of the board of directors of a local government corporation.]
5-5 SECTION 6. The importance of this legislation and the
5-6 crowded condition of the calendars in both houses create an
5-7 emergency and an imperative public necessity that the
5-8 constitutional rule requiring bills to be read on three several
5-9 days in each house be suspended, and this rule is hereby suspended,
5-10 and that this Act take effect and be in force from and after its
5-11 passage, and it is so enacted.